Cost Allocation
Defining cost allocation methods is one of the services offered by VMS. The creation of the calculation can be integrated in the VMS Monitor.
The invoiced costs of internal service providers are often criticized. We quote one user at a customer site, who (by the way, without good reason) was of the opinion: Nowhere is “SAP so expensive, as here”.
The VMS Fair Pricing module, which can be integrated into the VMS Monitor, makes it much easier to calculate costs and document individual, day-to-day operating costs.
What is important is that by measuring use, the actual price drivers can be identified. This is because today’s method of cost allocation, whether as lump-sum amounts, or on a per capita basis, offers little incentive to users to utilize resources economically.
At the same time, suppliers of most cost allocation modules for SAP unfortunately offer no real improvement, either. SAP costs are charged on the basis of every second of CPU-use per transaction. However, only seven percent of those costs accrue to the application server, which is accessible as a CPU resource-user.
VMS gives you the opportunity of charging for the use of SAP systems according to freely-designed utilization criteria. As a starting point, we offer a range of parameters for use, such as support-intensive application components, the costs incurred in application management, license-utilization and, finally, charging precisely for technical use.
In addition, there is also the matter of developing a control system. Here are some best practice approaches for some of the more difficult issues in cost allocation:
- Pricing in implementation and rollout phases
- Optimizing customized client developments through price-management
- Expansion of the financial options for IT: users pay for the operation, IT pays for the research and development of new IT-supported processes.
Cost allocation offers many IT strategy options. Please contact us to discuss the options.
Customer Story
“We are extremely satisfied, because VMS is a very competent partner that presents itself not only as a classical service provider, but also provides goal-directed alternatives for discussion, based on its broad expertise. Our users appreciate it that we assign IT costs on a use basis, but that we can also respond flexibly to specific local situations. And we then make available to Controlling and to the business auditor a well-documented, origin-based calculation for the international companies.”
Bernhard Gebhart, Head of Applications, Eurocopter Deutschland GmbH